Postmaster General David Steiner said the USPS would hold off on major action until after the peak mailing season and the New Year. The warning comes despite an improvement in its latest quarterly results, with the agency continuing to report multibillion-dollar losses, falling mail volumes and pressure from retirement-related obligations.
Congress Faces a Choice over Service Levels and Federal Support
According to Newsweek, Steiner told the USPS Board of Governors that Congress must decide whether to provide funding and legislative changes to support public-service requirements, or leave the Postal Service to pursue more aggressive measures to reach financial break-even.
“We have peak season coming up, so we would not take any action until after the New Year, but if we can’t get agreement on a legislative package this year, our plans would certainly have to entail changes that will impact service,” Steiner said.
Those measures could include examining current service levels, closing thousands of post offices considered unprofitable and raising prices. Steiner did not identify which individual post offices could be affected.
He argued that the current model places conflicting demands on the agency. USPS is expected to finance its nationwide operations largely through postage, shipping services and other products, while Congress sets a number of public-service obligations and financial rules.
The Postal Service plans to present a legislative proposal to Congress and the Trump administration. According to Steiner’s remarks reported by Newsweek, it would include a federal appropriation, changes to employee benefit arrangements and increased borrowing authority.
Steiner said any federal support should be considered in the context of the wider postal industry, which he said generates $2 trillion in sales and supports nearly 8 million jobs. He also said appropriations could be reviewed and reduced if the agency’s finances improve.
Losses Continue despite Higher Revenue and Stronger Quarterly Figures
USPS is also seeking greater flexibility to raise postage prices. Steiner said higher prices had contributed to revenue growth despite falling mail volumes, with total revenue increasing because of price rises in 14 of the previous 16 quarters.
The agency wants authority to introduce further price increases in January 2027 rather than waiting until July 2027. Steiner said the earlier timing could generate between $600 million and $800 million in additional cash.
According to the financial results cited by Newsweek, USPS reported operating revenue of $19.9 billion for the third quarter of fiscal 2026, up 6.1 per cent from the same period a year earlier. Its net loss narrowed from about $3.1 billion to $2.5 billion, while its controllable loss fell from $1.6 billion to about $1 billion.
Shipping and package revenue increased by 7.7 per cent even as volume declined by 3.4 per cent. First-Class Mail revenue rose by 4.3 per cent while volume fell by 3.5 per cent. Marketing Mail recorded increases in both revenue and volume. The improvement has not removed the agency’s liquidity concerns. Operating expenses reached $22.5 billion during the quarter, up 2 per cent, with retirement, compensation and transportation costs contributing to the increase.
USPS recorded a $9 billion net loss in fiscal 2025 and projected another $8.1 billion loss for fiscal 2026. It also forecast total mail and package volume falling by 6.6 per cent from 2025, while cash and short-term investments could decline from $14 billion at the start of the fiscal year to $3.4 billion by year-end if scheduled retirement-related payments are made.
